If a Company Is Using Accrual Basis Accounting,when Should It

question 206

Multiple Choice

If a company is using accrual basis accounting,when should it record revenue?

• A) when cash is received, even though services may be performed at a later date
• B) when services are performed, even though cash may be received at a later date
• C) before services are performed
• D) when cash is received, 30 days after the completion of the services

---

Definitions:

Expert Power

A form of influence derived from possessing specialized knowledge or skills in a particular area.

Coercive Power

Refers to the ability of a person to influence others' actions through threats or punishment.

Legitimate Power

A form of authority where power is given based on a person's position or role within a hierarchical structure.

Zone Of Indifference

A range of actions or decisions by authority figures that individuals are willing to accept or comply with without objection.